2-1 - I. Demand for Labor- short run Marginal Revenue...

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I. Demand for Labor- short run Marginal Revenue Product: the value of an additional unit of output from an additional unit of input MPP # of people on board MRP 300 SRDC @ $3 a fish 100 SRDC @ $2 a fish 1 2 3 4 # of people on board II. Demand for labor- long run Assumptions: (adjustment to the first one): There are two inputs, labor and capital and both are variable (long run) The rest are all the same
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Wage W 0 L.R.D. Curve S,R.D. Curve Q 0 # of employees Short Run Effect is the scale effect b/c other inputs aren’t variable Long Run effect of a wage change is both the scale and the substitution effect b/c only in
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This note was uploaded on 09/28/2008 for the course ILRLE 2400 taught by Professor Smithr during the Spring '07 term at Cornell University (Engineering School).

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2-1 - I. Demand for Labor- short run Marginal Revenue...

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